How can I make this work? Minor on title...

[gresmi]

I'm working on a deal with the grandparents of a minor. One of the minor's parents died of a drug overdose. Deed was in parent's name who passed away. Grandparents then hired an attorney who transferred title to minor.

There are renters in the house who have been there since before parent passed. They have been paying the rent, but grandparents are stressed because rent no longer covers mortgage, taxes, and insurance. They reach in their pocket every month for ~ $90-100, plua any miscellaneous expenses also come out of their pocket (e.g: new frig for $300 recently).

Grandparents, minor, and other living parent want to sell to me. But, obviously minor cannot enter into binding contract. Cost of legal work to retitle or guardianship is do-able, but any transaction would probably be shot down in review because of discounted price. BTW, house needs a LOT of work, but there is room for profit after work is done.

I thought about taking over the responsibilities and post-dating a contract and filing a notice of interest now, but want to make sure I purchase the property in the end.

Thought I'd check with others to see if someone had a better alternative.

TIA.

Greg

[StacyKellams]

In my opinion, when you start getting into title issues like this you need to contact a good title attorney in your state to make sure you comply with all your state laws.

I'm not an attorney, but I'd be asking the question "is it normal for title to be transferred to a minor in your state knowing a minor can't enter into a binding contract?"  If not the first attorney made a mistake and he might be responsible for fixing the mistake.

Another question to ask yourself is, if the grand parents can't make this property cashflow are you sure you're going to be able to?

Good luck.

[gresmi]

Stacey,
Thanks for your reply. I am working with an attorney on this. Yes, definitely strange that the title was transferred into the minor's name only. And yes, I can make the property cash flow.

Thanks again for your help.

Greg

[Bud Branstetter]

The grandparents should go back to that attorney and have him, for free,  make the grandparents guardians so they can sign for the minor.  If he won't they should file a grievence with the state bar on the attorney that put a minor on title.  

Since this is a community property state half of the deceased spouse's interest went to the other parent. Therefor only one-fourth belongs to the child.  You will probably need the other parent to cooperate.

[John Hyre]

Good answer from Bud - I think he hit the nail on the head.

John Hyre